OECD Green Growth and Sustainable Development Forum 2024

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Session 2 - Greening cross-border supply chains with better environmental footprint monitoring

Oct 11, 2024 | 7:30 AM - 9:00 AM

Auditorium

Description

Companies face growing pressure from consumers, regulators, investors, and civil society to disclose and reduce emissions generated throughout their supply chains. This demand affects the nature of the information importers and producers need to provide at the border, and raises new challenges associated with the measurement and monitoring of carbon footprint along cross-border value chains. Among them, there can be higher trade costs from the lack of harmonization or interoperability of approaches to calculate product-level carbon intensity. This session will explore how trade policies – e.g., trade facilitation measures – and international co-operation can reduce trade costs associated with these new requirements, with a view to discussing best practices and identifying gaps in data necessary for their implementation. The discussion will also refer to the latest progress made by the OECD’s Inclusive Forum on Carbon Mitigation Approaches (IFCMA) in this area.

Presented by

Session 2 - Key Resources

Environmental impact of food supply chains

Fast and furious: the rise of environmental impact reporting in food systems

Powerful long-term drivers are increasing both the demand and supply of quantified environmental impact information in food systems. The trend is fast (with many initiatives underway) and furious (presenting a confusing landscape) but has so far received little attention from economists. Better information can inform public and private efforts to reduce environmental pressures. However, the use of different methodologies and reporting requirements could lead to a fragmented landscape. Moreover, there is a risk that poor producers will be disproportionately affected. We discuss the trend, its drivers, impacts and potential pitfalls, as well as the many open research and policy questions.
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Emissions Measurement in Supply Chains

Business Realities and Challenges

Increased visibility of supply chain emissions can make a critical contribution to decarbonizing the global economy. It can inform corporate decisions around procurement, product design and research and development (R&D), as well as financial decision-making by investors. These promises cannot be realized if market actors are unable to meet reporting requirements, or if the resulting data are not trustworthy. Policy-makers must therefore carefully navigate the question of supply chain emissions measurement.
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Environmental impact of food supply chains

Improving environmental outcomes along food supply chains: A review of initiatives and their effectiveness

This paper reviews initiatives which take a “supply chain lens” to improving environmental outcomes of food systems. The review demonstrates the strong growth and diversity of initiatives, bolstered by more clearly defined societal expectations and reporting standards, and leading to a greater availability of data and evidence and more universal reporting, reducing the scope for greenwashing. Despite their great promise, there remain coverage gaps. Evidence on effectiveness also remains relatively scarce, although there is a clear increase in the number of empirical studies.
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Environmental impact of food supply chains

Environmental impacts along food supply chains: Methods, findings, and evidence gaps

This paper reviews what is known and not known about environmental impacts along food supply chains, looking at the contribution of different stages of the supply chain, the impact of different products, heterogeneity among producers, and the role of international trade.  This review shows that most environmental impacts in food supply chains occur through land use change or at the stage of agricultural production.
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International regulatory co-operation

Trade and Economic Effects of International Regulatory Co-operation

Cutting trade costs, especially those stemming from non-tariff measures, is a growing priority for policy makers. One way to achieve this is for countries to improve their co-operation on regulatory matters. An avenue open to governments is to include provisions related to international regulatory co-operation (IRC) into preferential trade agreements (PTAs). However, there exists little empirical evidence of the benefits of these co-operative mechanisms. This paper provides this evidence, in the context of Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) provisions. 
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